money math matters: financial literacy...

Money Math Matters: Financial Literacy Instructional

and Activities

Presented by: Michael Matos Director of Adult Education Programs and Data; Instructor Albany Park Community Center – Chicago, Illinois Doc sharing and email: [email protected] Web sharing: http://del.icio.us/apccctc Twitter: @mmatos02 Georgia’s 2017 Adult Education Fall Conference in Atlanta, GA

mailto:[email protected]

http://del.icio.us/apccctc

https://twitter.com/mmatos02

Math Money Matters: Making Decisions, Making Money, Budgeting, Banking Services, Saving and Investing, Credit, Buying a Home, Cars and Loans, Consumer Awareness, Consumer Privacy, Advertising

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Some Financial Literacy Teaching Strategies

Accelerated or individualized: a system of having students work at different levels individually in one classroom. They progress by scoring higher on assessments for each unit and moving at their own pace.

Building vocabulary: Use brief, random, and recurrent assessments to help students build basic subject-specific vocabulary and also gauge student retention of subject-specific vocabulary. Review money and mathematical vocabulary concepts using math games. Student developed glossaries can be used; where students keep track of key content and concept words and define them in a log or series of worksheets that they keep with their text to refer to.

Design multi-sensory lessons: that address various student learning styles, i.e., visual, auditory, tactile, and kinesthetic.

Generate data from real life experiences: involving all aspects of an adult’s life, including education, family, neighborhood, employment, and community, in teaching the child useful life and educational skills.

Integrate educational technology: tools, i.e., online tools, interactive Office documents, online math websites, and interactive computer games.

Make numbers come to life: Base your instruction in your learners’ real world experience.

Problem solving instruction: explicit instruction in the steps to solving a mathematical or science problem including understanding the question, identifying relevant and irrelevant information, choosing a plan to solve the problem, solving it, and checking answers.

Reinforcing math skills through games: Using games to follow-up a lesson in order to reinforce learned skills and use the skills in another context.

Student generated word problems: Have students create word problems for a specific math skill. Through the construction of a problem the students learn what to look for when solving word problems they are assigned. Students learn to understand the setup of a mathematical situation.

Tactile, tangible experiences: Using three dimensional objects in math instruction such as geometrical shapes, coins, or blocks used to form various geometrical shapes. Integrate hands-on activities by using manipulatives, real life materials, and calculators. Use visuals whenever possible to reinforce auditory instruction, i.e., charts, graphs, manipulatives, diagrams, models, real objects.

Using Graphic Organizers: employing visual displays to organize information into things like trees, flowcharts, webs, etc. They help students to consolidate information into meaningful whole and they are used to improve comprehension of stories, organization of writing, and understanding of difficult concepts in word problems.

Using manipulatives: When teaching math it is important to show them what you’re talking about. Manipulatives help learners visualize the numbers and remember as much as possible.

http://suite101.com/article/four-math-games-for-elementary-school-students-a66265


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Teaching Financial Education

1. Imagine Your Ideal Life

• students write about their ideal lives

2. Opening Our Student’s Eyes

• students’ focus on the importance of planning and saving for retirement

3. Financial Fitness for Life

• students understand five economic and personal finance concepts: Money Management, Spending and Credit, Saving, and Earning Income

4. Budgeting for the Real World

• students learn about how to budget their money

5. Business Dreams

• students to apply mathematical concepts, calculations and processes to master finances for a business


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Money Stories, Poems, and Songs To develop activities and practice for ESL Math

One a Penny

One a penny, Two a penny,

Three a penny, More,

Four a penny, Five a penny,

That's a nickel more.

Six a penny, Seven a penny, Eight a penny,

More, Nine a penny, Ten a penny,

That's a dime for the store!

Penny, penny, Easily spent.

Copper brown and worth one cent.

Nickel, nickel, Thick and fat.

You're worth five cents, I know that.

Dime, dime, Little and thin. I remember,

you're worth ten.

Quarter, quarter, big and bold.

You're worth twenty-five I am told.

Money Rhymes

Twenty five cents, Money that rhymes,

Take one nickel Add two dimes.

Three fat nickels, One thin dime.

Makes twenty-five cents Every time.

Five fat nickels, No thin dimes.

Makes twenty-five cents Any time.

The Penny See the shiny penny, brown as it can be, With two maple leaves for all of us to see.

It's made out of copper at a mint, A penny's worth one whole cent.

The Nickel

A resting beaver will be found On a nickel, shiny, smooth, and round.

The Queen is on the other side. A nickel is worth five cents. Say it with

pride.

The Dime A dime is the smallest coin of them all, With the Bluenose sailing nice and tall.

A dime is worth ten cents. Don't you agree?

Which makes me happy as can be!


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Smart –Poetry and Math

Instructions: Read the poem below and answer the questions that follow. Part I: Smart Poetry Reading

Smart My dad gave me one dollar bill ‘Cause I’m his smartest son, And I swapped it for two shiny quarters ‘Cause two is more than one! And then I took the quarters And traded them to Lou For three dimes—I guess he don’t know That three is more than two! Just then, along came old blind Bates And just ‘cause he can’t see He gave me four nickels for my three dimes, And four is more than three! And I took the nickels to Hiram Coombs Down at the seed-feed store, And the fool gave me five pennies for them, And five is more than four! And then I went and showed my dad, And he got red in the cheeks And closed his eyes and shook his head--- Too proud of me to speak! --- Shel Silverstein From Where the Sidewalk Ends HarperCollins Publishers: 1974

Instructions: Type or write correct letter on the line.

Show the amount of coins that the character gets when he trades his money and add them up. Part II: Multiple Choice “Smart” Questions

1)

My dad gave me one dollar bill ‘Cause I’m his smartest son, And I swapped it for two shiny quarters ‘Cause two is more than one!

a. Two quarters = .50 cents

b. Six quarters = $1.50

c. One quarter = .25 cents


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Financial Literacy WORD SORT

When you have chosen your 3 to 5 different words for each group of math words or phrases, explain below why they belong in this group. Complete sentences preferred and a title won’t hurt.

Word Group Title 1: _________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Word Group Title 2: _________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Word Group Title 3: _________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


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Word Bank

consumers opportunity cost incentive

supply demand market

recession competition specialization

profit total inflation

revenue traditional economy reduce

combined market economy remain/remaining

tariff the result is average

how many in all how many more development

trade whole productivity

quotient

wants export

command economy how many less gross Income

increased by how much left mixed economy

import gross domestic product

yields

garnishment increase less than

loan gross earnings nearer

capacity more than cost of living

needs taxes credit

payday loans sum cost


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TRUE/FALSE QUESTIONS

Click choose an item or write T or F on the line, ARE YOU HEAVY ON THE MUST-HAVES? 1. I worry about having enough money to cover my regular bills, like my electric bill. Choose an item. 2. It seems like most of my money goes to things I cannot control, like rent or car payments. Choose an item. 3. By the time I pay my bills, there is hardly anything left over. Choose an item. 4. The cost of living for just the basics - housing, car, insurance - seems way out of reach. Choose an item. 5. I only spend money on things I need, but there still is not enough. Choose an item. 6. Even though I never buy anything extravagant, I do not have anything in savings. Choose an item. 7. I cannot think of anything in my budget that I could really cut back on. Choose an item. If you marked true to more than one, you are probably heavy on the must-haves. DO YOU OVERSPEND ON WANTS? 1. When I go shopping, I am never quite sure how much I can afford to spend on things. Choose an item. 2. When I see something I really want, I just buy it, even if I do not have the money. Choose an item. 3. I never know where all the money goes. Choose an item. 4. I buy things, and then after I get them home I worry that I couldn’t really afford them. Choose an item. 5. Worrying about money sometimes takes the pleasure out of outings that are supposed to be fun. Choose an item. 6. When holidays or birthdays come up, I am not sure how much I can afford to spend. Choose an item. 7. I probably spend too much on clothes, restaurant meals, and/or going out for fun. Choose an item. 8. I work hard, so I buy the things I deserve. Choose an item.

If you marked true to more than one, you are probably overspending on wants


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$10 Rates

Directions: The longer your money sits in the bank, the more money it will earn for you. The money earned is called interest. The higher the interest rate, the more money you earn. Fill in the chart below, assuming you are figuring out the money earned on a deposit of $10 (for simple interest).

Future Value of money: $10.00

Years 5% 8% 10% 1 year 3 years 5 years 10 years 15 years 20 years

Use Interest Rate Formula: Interest (I) =

Principal(P) x Rate(R) x Time(T)

I = PRT


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Sale Price & Coupons

Some department stores offer markdowns on items that are already on sale. The customer must bring in a coupon to get the markdown. Those coupons are usually distributed by mail or in the newspaper. Look at the coupon below. Notice that most items are 20% off. Items like jewelry are only 10% off. Read all details on the coupon to see which items are on sale and what percent you will save. Final Cost = Regular Selling Price x Markdown = Sale Price x Coupon Markdown Rate = Final Sale

Item

Regular Selling Price

X

Markdown Rate

=

Markdown

Sale Price

Coupon Mark-down 25%

Price After 25%

Coupon = Final Sale

Price 1. Ralph

Lauren Cologne

$110.00 X

0% =

2. Skechers Shoes $69.99

X 10% =

3. Nike Socks 6 pack

$12.99 X 20% =

4. Carry-on Luggage $59.00 X 10% =

5. Fossil Watch $90.00 X 10% =

Formula = two steps:

Regular Selling Price x Markdown = Sale Price

Sale Price x Coupon Markdown Rate = Final Sale


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Pay Check Deductions Using the paycheck information below; calculate what percent each of the following is of the gross (pretax) income and write it on the lines after the questions:


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Use paycheck information to answer questions below. 1. Federal Income Tax 2. State Income Tax 3. FICA 4. Medicare Tax 5. Total Deductions

True or False Paycheck Quiz

Check your understanding of taxes by answering the following questions.

1. Net pay is the total amount of income you receive during a pay period before taxes. ☐ True ☐ False

2. FICA Federal Insurance Contributions Act ☐ True ☐ False

Looking at it from the employer’s math

An employer has one employee, Bob Jones, who is paid $1800.00 per month before deductions. Bob is married and claims two exemptions. His net paycheck is $1478.10. The details of his paycheck are: Gross pay $1800.00

Federal income tax -145.00 State tax -39.20 FICA tax -111.60

Medicare tax -26.10 Net pay $1478.10: In addition, the employer must pay $111.60 for FICA and $26.10 for Medicare. Question: What is the employer’s total labor expense for this month?


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Budget Scenarios

Scenario 1: Josie Lim has no children but is used to working long hours and never getting errands done. She lives in a tiny studio apartment near Lincoln Park, ($1000/month) but longs to have a house of her own. Josie eats out a lot (7 meals a week @ an average of $7 each meal), takes her clothes to a laundry service ($0.60 a pound @ 20 pounds every 10 days), belongs to a health club ($475/month) and parks in parking garages all day while she works in the loop ($14.70/day). Even though she is a third year apprentice and makes $19.00 an hour, she never seems to have money left over. What are some things Josie can do to start saving up for a down payment on a house someday?

Scenario 2: Ivette Jones loves to read and always buys the latest popular books as soon as they come out, usually in hardcover ($22-$35/book). She reads very fast so most of the time she goes through 2 to 3 books a week. Ivette’s favorite place to read is Starbucks, where she spends hours a day after work (3 times a week at least) just drinking and reading ($4/cup @ 2-3 cups a day). She lives alone in a garden apartment ($500/month) and takes the bus to work every day ($3/day). Her boss will let her change her schedule to fit around her pre-apprenticeship program once she gets in. She will be working 10 hours or so a week instead of 40 hours. At $8.00 an hour, that’s $80 a week she’ll be making ($52 a week take home after taxes). How can Ivette cut corners to compensate for unpaid pre-apprenticeship time?

Scenario 3: Jennifer Williams is single and has no children. She is on the waiting list for the Carpenter’s pre-apprenticeship program and will start class in about six months. Between now and then she needs to save up for 9 weeks of unpaid training. Right now she works 40 hours a week at Starbucks, making $10.00 an hour. ($6.50 an hour after taxes, otherwise known as take home pay.) Lately she has been trying to work 5 hours of overtime a week, because she keeps coming up short on her bills. Jennifer’s monthly expenses include:

Rent: $650.00 Credit Card: $320.00 Transportation: $100.00

Jennifer cannot hang on to her money. Between cigarettes, dining out, cable TV and shopping, she is living beyond her means. Can you help Jennifer save for her pre-apprenticeship without ruining her life?


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Scenario 4: Mary Fields is a single mom with 1 child. Mary lives with her parents and attends school part-time. Mary needs to move into her own apartment in 6 months, and needs to save $2000. Mary makes $9.00 an hour before taxes. Her expenses include:

Car payment $380.00/month Childcare $200.00/month Books for Class $250.00/every six months Tuition is $418.00/every six months Credit Card $150.00/month

While Mary is at class she usually spends $6.00 a day for lunch. Mary doesn’t like taking the train to work or to school because it costs her 2 extra hours of child care a day. Other than her commute, she rarely uses her car, because she doesn’t have time or money to go out very much. How can she save up $2000 in six months?

Scenario 5: Thomas and Martha Van Key ae married and have five children all under 10. Thomas makes $8.00 an hour. Martha makes $15.00 an hour. In order to make ends meet they are already very thrifty. The problem is that they need a minivan so Martha can take a new job farther away from home and still pick up the kids after school care on the way home. They have no money for a down payment but they do have good credit. How much can they save in three months and how much can they afford for a monthly payment?

Mortgage $1200/month Childcare $600/month Public Transportation $300/month Health Insurance $200/month

To save money, Thomas sews clothes and bakes bread and other goodies. Martha is also an able mechanic and can help maintain a car cheaply. They don’t need fancy things and rarely go out to dinner. Are there any other ways to cut corners and keep the seven Van Keys happy and healthy?


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Budget Decision Making

Justine has just started her first job after graduating from college. She earns $45,000 per year. She has estimated all her annual expenses in her budget as percent of her yearly salary. 1. Convert Justine’s budget percentages to dollars. Rent (with one roommate) 14% Click here to enter text. Food 13% Click here to enter text. Clothing 14% Click here to enter text. Transportation 9% Click here to enter text. Medical 4% Click here to enter text. Recreation 7% Click here to enter text. Federal Taxes 14% Click here to enter text. State Taxes 7% Click here to enter text. Savings 7% Click here to enter text. Miscellaneous 11% Click here to enter text. 2. If Justine gets an apartment by herself, her yearly rent would be $11,600. What percent of her salary is that? 3. Subtract 14% from your answer to Question 2 to find the percent change in her rent expense in relation to her total budget. 4. Some things, like Federal taxes, cannot be changed because they are not under Justine’s control. What changes can she make so that she can move to her own apartment without too much of a burden on her current budget? 5. Do you think Nora should get her own apartment? Can she afford her own apartment? Why or why not?


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Budgeting and Expenses

Fixed expenses

Fixed expenses are expenses you can’t really control because they’re necessary. Adults usually have fixed expenses, like rent or car payments. This is an expense that will be the same total amount regardless of changes in the amount of sales, production, or some other activity. They occur regularly and don’t change from month to month. For example, a retailer's monthly rent expense of $2,500 is a fixed expense because it will be a total of $2,500 whether the monthly sales are $20,000 or $40,000. Fixed expenses:

• Occur regularly • Are necessary for day-to-day living • Don’t change from month to month

Flexible expenses

Like fixed expenses, flexible expenses occur regularly, and they’re expenses that you can’t really get around. Flexible expenses are costs that may be manipulated in amount or eliminated by not engaging in the activity that incurred the expense. In personal finance, flexible expenses are costs that are easily changed, reduced or eliminated. Spending money on entertainment and clothing represent flexible expenses. Even expenses that must be incurred, such as a grocery bill, can be considered flexible because the amount spent can vary. Flexible expenses:

• Occur regularly • Are necessary for day-to-day living • You have some control over the amount

Directions: With another player alternate draws. Select a card from an upside-down stack and turn it around to reveal the expense. Write down the expense in the expense column in the table on the other side of this paper. Write yes in the column that best explains the expense; fixed or flexible. In the row below explain why you chose fixed or flexible. Refer to the definition and examples above when needed. Complete with a partner and take turns.

http://www.investopedia.com/terms/e/expense.asp

http://www.investopedia.com/terms/p/personalfinance.asp


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Fixed expenses or Flexible expenses

Expenses Flexible expenses Fixed expenses

Explain:

Explain:

Explain:

Explain:

Explain:

Explain:


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How I Spend My Money


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What’s Important to you? Directions: Listed below are words describing some of the values that may affect your financial goals, decisions, and actions. Think about these values and others you feel are important. First, check the values that are important to you. Then, rate the importance of each value with 1 being the highest and 5 the lowest.

Rating High Low

Value 1 2 3 4 5 Independence

Peace

Satisfaction

Friends

Leisure

Safety

Family Relationships

Community

Equality

Health

Security

Knowledge

Others (list)


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Needs versus Wants Directions: You may have many things you want and need. Think about these things. List 10 of the things you need or want.

Need - something that a person must have: something that is needed in order to live or succeed or be happy

Want - to desire or wish for (something)

Place a in the column to identify the item as a need or want. Rate the importance of each need or want with 1 being the most important and 5 the least with a .

Most Important

Low Important

High Low

I need or want Need Want 1 2 3 4 5


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Where Are You Going? Directions: Focusing on the picture you just drew, list those financial goals that will help you get the type of future in your picture. Be specific. For example, a down payment for a used car, payment for a refrigerator, etc. Estimate the cost of each goal, estimate when the goal is needed, and rate the importance of each goal, with #1 being the highest priority and #5 the lowest.

Goal Cost Date Wanted

Priority

Needs

Wants


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Talk about Money Directions: Take a few minutes to involve members of your household or family at home in the following questions about money. First, ask each person separately; then compare the answers as a group. The similarities and differences that turn up can spark a discussion of values, attitudes, and practices.

1. If you were to receive $500 tax-free, what would you do with it?

$ for

$ for

$ for

$ for

2. Do you agree or disagree with the following statement? Place a in one of the columns to identify whether you agree or disagree with the statement on the right.

Agree Disagree Statement I’m too tight with money.

Having a say in how money is spent as a family/household decision is important to me.

I feel good about the way financial decisions are made in my family/household.

Sometimes I buy things I don’t need just because they’re on sale.

I believe in enjoying today and letting tomorrow worry about itself.

3. I’d like to see less money spent on

and see more dollars go for .

4. What money problem is the most frequent cause of argument?


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Minimum Payment Trap Creditor: Smith and Smith Store

Current Balance: $550

Annual Interest Rate: 19.9%

Monthly amount paid

Total number of months to

repay

Total amount of interest

paid

Total amount of debt paid

Minimum payment

$15

4 years

9 months

$304.13

$854.13

Extra payment of $5

$20

3 years

2 months

$190.43

$740.43

Maggie got an installment loan at the Smith and Smith Store to buy a TV. Her payment is $15 each month.

If she pays an extra $5 each month or $20 total,

1. how much money will she save in interest? $

2. how much money will she save in her total debt? $

3. how much quicker will she have her total debt paid? $

Do you think it is a good idea for Maggie to pay an extra $5 a month?

☐ Yes ☐ No

Why? Click here to enter text.

number of years/months


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Payday Loans Can Be Costly!

Need extra cash to get by until your next payday?

Get Cash Fast!

In italic above are just two of the ads used on TV, radio, and even in the mail. They’re ads for a costly way to get money-payday loans.

Let’s say that John’s car needs repairs, and he doesn’t have the $100 he needs to get it fixed. He’s thinking about going to a payday loan store. The lender will loan him $100 in cash, but John will have to write a check for $115 to borrow the money. The payday lender says he’ll hold the check until John’s next payday two weeks later. At that time the lender will deposit the check, or John can redeem it by paying $115 in cash.

If John doesn’t have the money and rolls over the loan for another two weeks, he’ll have to pay an extra $15 fee! In the bar graph below see what happens if John continues to roll-over the loan.


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$160

$145

$130

$115

$100

$100 Money Needed

1st Loan 2nd Loan Roll over loan every 2 weeks

3rd Loan 4th Loan

In John’s example, the cost of his first loan is a $15 finance charge at 390% APR. If he doesn’t pay off his first loan and rolls over the loan three times, the finance charge would be $60 just to borrow $100. If you’re thinking about getting a payday loan, the Truth in Lending Act says you must receive, in writing, the finance charge (the fee charged to borrow money) and APR (the cost of credit on a year basis). 1. Edward’s single family home needs some roof repairs. He doesn’t have the estimated $1500

to get it fixed. His credit rating is not the best, so to get a bank loan will be challenging. He goes to a payday loan store. The lender will loan him $1500 in cash, but Ed will have to write a check for $1650 to borrow the money. The payday lender says he’ll hold the check until Edward’s next payday two weeks later. At that time the lender will deposit the check, or Edward can redeem it by paying $1650 in cash. If Edward doesn’t have the money and rolls over the loan for another two weeks, he’ll have to pay an extra $150 fee! a. Create a bar graph below similar to the one above for John to see what happens if

Edward continues to roll-over the loan at this rate. b. Calculate the APR for Edward. Remember that for the example: John had an APR of

390%.

John’s payday loan roll-overs


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Housing: Different Places to Live

Private House

You own the house and land. You are responsible for everything including utilities. You borrowed money from the bank to buy the house.

Mobile Home

You are the tenant and landlord. You own the home but not the land. You live in a park with other mobile homes owners.

Condominium

You own the apartment. A company manages the building. The company is responsible for all repairs “Condo” owners can buy and sell the apartments without permission from anyone.

Apartment

You pay rent to the landlord. You sign a lease, which is an agreement between you and the owner of the apartment building owner. The lease states how much rent you will pay, usually monthly.

Co-op

The tenants own and manage the building. They are responsible for any repairs. Tenant-owners who want to sell their apartments need permission from the other tenants.


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True or False: Click on Choose an item for True or False or Write in on the Line

1. A landlord is the owner of the apartment building. Choose an item.

2. You can borrow money from a bank to buy a house. Choose an item.

3. A family in a mobile home can live next to a private home. Choose an item.

4. Both condo owners and tenants sign leases. Choose an item.

5. You have to pay your own heat if you own your home. Choose an item.

6. Owners of “condos” can sell their units to anyone they want to. Choose an item.

7. A lease is an agreement between tenant and landlord. Choose an item.

8. If you want to sell your co-op apartment, you need to get the permission of all the tenants. Choose an item.

9. When you own a mobile home you also own the land with it. Choose an item.

10. Both condominium and co-op owners manage the buildings they live in. Choose an item.


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Should You Rent or Buy?

The average middle-class six-room house in the United States in 2014 cost approximately $102,000. In 1983 the cost was estimated at $75,000. When you buy a house, condominium, or mobile home, you usually have to make a down payment which can range from 5% to 30%. If you buy a $102,000 home with a 15% down payment you need to have $15,300 for the down payment. The bank loans you the rest of the money ($86,700) for a mortgage. Then you pay back the loan plus interest to the bank for a period of 20-30 years. Your mortgage payment to the bank every month for the loan includes the principal, interest, and taxes. Interest rates on home loans change. In 1983, interest rates were as high as 12% in some banks. Today, interest rates can be as low as 2.99% and as high as 5.99%. One-bedroom condos can sell as low as $48,000. So many young couples and retired people prefer condominium ownership.

If You Buy If You Rent • You must have the down-payment

money and be able to meet monthly mortgage payments.

• In most cases you also need to have a good credit history.

• Monthly mortgage payments may be less than rent for the same size space and convenience. Interest payments and real estate taxes are tax deductible.

• Homes and condos are almost always good investments.

• You have independence and especially in a home, you have no noisy upstairs neighbors!

• You also have a sense of pride and new responsibility in your neighborhood and town.

• You retain mobility; if you move often you avoid the problem of selling a home.

• You avoid expensive repairs and leave the upkeep problems to the landlord, which saves you time, money, and allows you to pay attention to other things.

• However, rents almost always increase. You don’t get money back when you move.

• You don’t pay interest, but no tax deductions from rent increases.

• If you work in the city and rent close to your job, you avoid commuting problems and expenses.

• Allows you explore and experience new neighborhoods without the commitment.

Write a paragraph (at least five sentences) below explaining your reasons for deciding to either buy or rent.


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Home Budgeting - Group Project

On the computer, open the Excel file you created for Exercise 3 (Budgeting). This is Maria’s budget for each month of summer 2016. Use the information in the budget to answer the questions below.

1. What fraction of her income is spent on food?

2. What percentage of her income is spent on food?

3. Elena decided that in the future she needs to put 15% of her income into savings. If she had saved 15% of her income in 2016, what amount would she have saved?

4. Elena’s daycare center is now charging an additional 6% during the

summer months. How much will child care cost for June, July, and August combined?

5. Elena wants to make a pie graph to show her different sources of

income. How do you think this graph will look? Draw your estimate on the back of this page.

6. Create the pie graph on the computer:

• Highlight Elena’s three sources of income (paycheck, newspaper delivery pay, lawn mowing pay) and the three income amounts.

• Click on the Insert Tab and then

the Pie Icon, and select one of the pie charts.

• Try different options in the chart wizard. Can you add these

things to your graph? 1. a title 2. the percentage amounts next to each part of the graph


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Directions: With another player alternate draws. Select a card from an upside-down stack and turn it around to reveal the money idiom or metaphor. Write down the money idiom or metaphor in the row in the table below. In the row below it explain what you think is the meaning of the idiom or metaphor. Try to explain what it might mean financially and mathematics. Complete with another player, taking turns.

Draw # Idiom or Metaphor Meaning

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.


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Functions of Money and Forms of Payment The Three Functions of Money

Store of Value:

Money functions as a store of value when you can choose not to spend it today but instead buy something with it in the future. However, rising inflation can make money a poor store of value because its purchasing power is reduced over time. Fish were sometimes used as a form of money during the Colonial times, but fish didn’t function well as a store of value.

Medium of Exchange:

Money functions as a medium of exchange if sellers are willing to accept it in return for goods and services. In the past, however, sellers were willing to barter for goods and services. The problem with barter is what to do when you want to purchase something else after accepting payment. Imagine if you worked at a fast-food restaurant and you were paid only in hamburgers and French fries. It would be extremely difficult to purchase clothing and CDs with cold burgers and stale fries.

Unit of Measure:

Money functions as a unit of measure if it can measure the value of goods and services through the mechanism of prices. Without pricing, consumers could not compare a used $4,000 clunker with a brand new $40,000 sports car. Although beaver pelts were bartered by many of the American pioneers, they were not a good unit of measure because they came in different sizes with varying degrees of quality.

Ten Common Forms of Payment in a Today’s Economy

1. cash 2. coin 3. check 4. credit card 5. debt card 6. direct deposit 7. direct payment (A direct payment is a form of electronic bill payment for consumers that

allows them to pay their bills for services or products over the Internet through their banks.) 8. money order 9. internet payment (ex. PayPal) 10. barter (still used informally)


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Student Survey of Consumer Payment Methods Our class is conducting this survey as part of our study of the nation’s payment system. We want to determine the methods people use to pay for various goods and services.

We will interview ten consumers. An example has been completed.

Interview #

Groceries Electricity Rent/Mortgage Phone Gas Clothes

Example:

cash check direct deposit check credit card debit card

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.


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The Printed Check and Keeping Your Balance

1. Your name and address: Your telephone number and email also can be printed here.

2. The check number: Use this number to keep track of each check and its amount.

3. Routing numbers: The top numbers tell the state in which the bank is located and the bank’s identification. The bottom numbers name the regional Federal Reserve Bank that will handle the check.

4. The account number of your checking account. 5. Computer routing numbers: The numbers are written in

magnetic ink so a computer can read them. 6. Bank name and branch of the bank that handles your

checking account.

2

3

4 5

6

1


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Keeping Your Balance Activity

Use the following information and the forms in the different envelopes to:

1. Deposit an endorsed paycheck. 2. Write checks 322 and 323. 3. Record all transactions in the checkbook register.

(including ATM receipt) 4. Balance the checkbook register using the bank statement. 5. Your opening balance is $53.21.

1. Endorse and deposit check:


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2. Write two checks for:


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3. ATM withdrawal

4. Record all transactions in the checkbook register. (including ATM receipt) and check your results before you receive your bank statement. Remember your opening balance of $53.21


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5. Balance the checkbook register using the bank statement.


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Register Table: Record of Deposits, Payments, and Withdrawals

Check Number

Date Transaction Payment/ Withdrawal

Deposit $ Balance

money math matters: financial literacy...

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